MONTPELIER — Vermont’s capital city is getting ready to begin construction of a project that will have some of Montpelier’s downtown buildings being heated from a central wood-chip fired heating plant.

The Montpelier City Council on Wednesday voted 4-1 in favor of a $3.7 million construction contract for its portion of the project.

The state and city will work together on the project to build a new heating plant behind the Department of Motor Vehicles that will to supply heat and hot water to state facilities and some buildings in the city.

The plant is designed to reduce toxic emissions in downtown Montpelier by as much as 11 tons per year and save 150,000 gallons of oil a year. It’s expected the project could be online by next fall.